Merchants National Corporation
| Merchants National Bank & Trust Company | |
| Company type | Public |
| Nasdaq: MCHN (1972–1992) | |
| Industry | Banking |
| Founded | March 1865 as Merchants National Bank & Trust Company in Indianapolis January 3, 1972 as Merchants National Corporation |
| Defunct | Template:End date and age |
| Fate | Acquired by National City Corporation |
| Successor | National City Bank Indiana |
| Headquarters | Indianapolis, Indiana, United States |
Area served | Indiana |
| Products | Financial services |
| Total assets | $5.7 billion (1992) |
| Subsidiaries | Template:Ublist |
Merchants National Corporation (MNC), headquartered in Indianapolis, was a prominent statewide bank holding company and ranked among Indiana's largest financial entities until its 1992 acquisition by the Ohio-based National City Corporation. Its principal subsidiary was the Merchants National Bank and Trust Company, founded in Indianapolis in 1865.
Between the mid-1950s and late 1980s, the banking landscape in Indianapolis was dominated by three institutions: Merchants National Bank and Trust, American Fletcher National Bank, and Indiana National Bank. Their respective holding companies—Merchants National Corporation, American Fletcher Corporation, and Indiana National Corporation (which later became INB Financial Corporation)—stood as the leading bank holding companies within the state.
History
Merchants National Bank & Trust Company formed the holding company Merchants National Corporation in January 1972 to facilitate growth through acquisitions of banks and other financial firms. This restructuring positioned the bank as a fully owned subsidiary under the holding company, thereby enabling more expansive strategic development.
Expansion beyond Marion County
Prior to July 1, 1985, Indiana laws prohibited banks from branching across county boundaries and limited bank ownership to holding companies based solely in their home counties. After this date, regulations were relaxed to permit restricted branching and allowed holding companies to acquire banks throughout the state, provided their total deposit share did not surpass a gradually increasing cap starting at 11 percent.[1][2]
MNC's initial venture outside Marion County was announced in June 1985 with plans to acquire Farmers National Corporation of Shelbyville, along with its subsidiary Farmers National Bank. This transaction was finalized in January 1986.[3][4]
In July 1985, MNC revealed its intention to purchase Putnam National Corporation from Greencastle, including Central National Bank, for $7.3 million paid in stock and cash; this acquisition concluded in February 1986.[5][6]
September 1985 saw MNC declare the acquisition of Hancock Bancshares based in Greenfield, along with Hancock Bank & Trust, for $9.5 million in stock. After initially securing a 17% stake, the full purchase was completed by April 1986.[7][8]
MNC announced plans in November 1985 to acquire US Bancorp of Carmel, which controlled Union State Bank under the Frenzel family; this deal closed in November 1986.[9][10]
The acquisition of Anderson Banking Company was declared in December 1985 and finalized a year later in December 1986.[11][12]
In January 1986, MNC announced it would acquire Alliance Bancorp of Danville along with Mid State Bank located in Hendricks County; this transaction was completed by November 1986.[13]
February 1986 brought news of MNC acquiring NBG Financial Corporation from Greenwood, including Farmers National Bank subsidiary, for $13.2 million paid in stock; this acquisition closed December 1986.[14][15]
In March 1986, MNC declared it would acquire Mid-Southern Indiana Bancorp based in Seymour with Seymour National Bank; this deal concluded December 1986 and marked MNC's initial expansion beyond central Indiana.[16][17]
April 1986 involved two acquisitions: Citizens National Bank of Tipton from Tipton and Farmers State Corporation controlled by the Frenzel family along with Mid State Bank from Zionsville. Both were completed late that year.[18][19]
MNC announced acquiring Fayette Bancorp of Connersville with Fayette Bank & Trust in August 1986; this transaction was finalized May 1987.[20][21]
In December 1986, MNC revealed plans to acquire Ohio Valley Bancorp from Madison including Madison Bank & Trust for approximately $28 million; this acquisition completed by September 1987. Following this purchase, National City divested Madison Bank & Trust in 2005.[22][23]
March 1987 saw MNC announce acquiring Elston Corporation from Crawfordsville with Elston Bank & Trust for $24 million; finalized February 1988.[24][25]
In April 1988, MNC declared its intent to acquire Batesville State Bank for $12 million.[26]
July 1988 marked MNC’s expansion into northern Indiana with the announcement of acquiring Riley Corporation based in East Chicago along with First National Bank of East Chicago; this purchase closed November that year.[27][28]
By April 1989, MNC agreed to acquire First National Bankshares headquartered in Logansport which included First National Bank of Logansport and First National Bank of Indiana subsidiaries for $22.9 million; this deal completed October 1989.[29][30]
National City Bank Indiana
In October 1991, National City Corp. revealed plans to acquire Merchants National Corporation, which encompassed Merchants National Bank and Trust Company of Indianapolis, in a stock transaction valued at $604 million. This merger finalized in May 1992, resulting in a unified organization managing roughly $30 billion in assets and operating 575 branches throughout Ohio, Indiana, and Kentucky. Following the consolidation of headquarters operations, the merger prompted the reduction of nearly 600 jobs, mainly within Indianapolis.